Wilmar looking at listing ops in Shanghai

SINGAPORE: Singapore’s Wilmar International Ltd, which is considering spinning off its China business, is looking to list it in Shanghai to boost its profile on the mainland and potentially pave the way for deals.

China is Wilmar’s biggest market, accounting for nearly 50 per cent of last year’s revenue of $41.4 billion (RM179.6 billion) for one of the world’s largest edible oil processors.

Its annual revenue from China has risen about 50 per cent since 2009.

Wilmar said in last Thursday’s earnings statement it was carrying out an “internal restructuring” of those operations. It confirmed on Friday it would mean reviving a listing plan first aired in 2009, but swapping the venue to Shanghai from Hong Kong.

“The timing is favourable as the Chinese government is encouraging foreign companies to list there,” a spokesman said.

Proceeds could be used to “expand the business” but the company did not comment on listing size or specifics, saying any offering proposal would be at least 18 months away.

Wilmar’s move revives its China listing plans nearly eight years after it shelved a blueprint for a roughly US$3 billion listing of the Chinese unit in Hong Kong in 2009, blaming volatile markets.

“In Singapore, the price earnings ratio is not as good as China, China is about 30 per cent more. It is not possible to take money out of China and invest in Singapore stock exchange,” said a source. Reuters